Budget targets mean little with large rollovers

Given that this year’s budget began with an unrealistic R 65,000 crore petroleum subsidy number despite FY13’s R97,000 crore—which included a R53,000 crore slippage—it was always obvious the fiscal numbers would go horribly wrong on this front. And this is when, in FY13, R64,000 crore of the under-recoveries were borne by various oil PSUs—this year’s total under-recoveries are expected to be in the region of R1.4 lakh crore. 

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